German exports plummet radically
The German export industry is losing momentum as it enters the second half of the year. The latest figures from May have raised concerns among experts.
German exports have fallen as much as they have since December. Exports shrank by 3.6% in May compared to the previous month, reaching €131.6 billion, according to the Federal Statistical Office. Economists polled by Reuters had only expected a decline of 1.9%. Exports had even risen by 1.7% in April. Imports fell by 6.6% in May to €106.7 billion. Economists had predicted a decline of 1.0%.
The German export industry is losing momentum as shown in a recent survey by the Munich IFO Institute. Export expectations for June dropped to minus 1.0 points, from plus 0.2 points in May. "There is no clear direction at present," said Klaus Wohlrabe, head of the IFO surveys, recently. "The export industry still has room to grow."
May was a weak month for German trade overall. Imports also fell by 6.6% compared to the previous month. Economists had predicted a decline of 2.0%. From a yearly perspective, there was a decline of 8.7%.
To position Germany as a strong competitor in industry, exports, and innovation on the global stage, the Federation of German Industries (BDI) sees crucial leverage in public investments, bureaucracy reduction, corporate taxes, and the improvement of other framework conditions. According to the BDI, there will be a shortage of funds for investments and funding programs of around €400 billion over the next ten years. Therefore, the Association considers it acceptable to set up precisely earmarked and clearly defined special funds.
The economic situation of Germany, heavily influenced by its export industry, is causing concern due to the decline in German exports. The fall in German exports in May was significantly more than expected, reaching a level not seen since December. The German export industry's momentum is also reflected in the decreased export expectations for June, as indicated by the Munich IFO Institute's survey.
